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27 August 2019
Prolific Philadelphia Illegal Firearms Trafficker Convicted at TrialRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Kenneth Eugene Cherry, Jr., 31, of Philadelphia was convicted at trial of multiple criminal firearms offenses: dealing in firearms without a license, possession and transfer of a machine gun, possession of an unregistered firearm, possession of a firearm with an obliterated serial number, and multiple counts of possession of a firearm by a convicted felon.
From August 2018 until February 2019, Cherry and other co-conspirators trafficked firearms from Virginia to Philadelphia, where Cherry illegally sold them on the street for profit. During this period, Cherry sold a total of 26 firearms to an undercover ATF operative, including two Glock “Auto Sear” machinegun conversion devices, sixteen semiautomatic handguns, and eight semiautomatic assault rifles, one of which had been cut down for purposes of concealment. Cherry also provided a large amount of ammunition with the firearms he sold.
“The defendant and others in this illegal gun trafficking organization endangered everyone in their midst on a daily basis by putting semiautomatic weapons on the streets illegally,” said U.S. Attorney McSwain. “Thanks to our dedicated partners at ATF and our Office’s trial team, the defendant will now pay for his crimes and will no longer be allowed to menace the Philadelphia streets.”
“The conviction of Mr. Cherry is a victory not only for ATF but for the citizens of Philadelphia as this conviction exhibits a continued and collaborative effort to combat violent crime in our community,” said Donald Robinson, Special Agent in Charge for ATF Philadelphia Field Division. “Together with our partners at the Philadelphia Police Department and the United States Attorney’s Office, we have been successful at dismantling a group dedicated to firearms trafficking in Philadelphia. ATF remains committed to working with our partners to combat violent crime by continuing to target firearms traffickers who are putting illegal guns out on our streets.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms, and is being prosecuted by Assistant United States Attorney Mark S. Miller.
Physicians and Cardiac Center Agree to Pay Total of more than $1.1 Million to Resolve Allegations that They Received Kickbacks from Northwest Medical Testing CompanyRead the Press Release
Three doctors and one medical practice entered into settlements with the U.S. Department of Justice to resolve allegations that they referred patients for genetic testing in exchange for kickbacks from a Seattle-area testing company, announced U.S. Attorney Brian T. Moran. The physicians, Dr. Gregory Sampognaro of Monroe, Louisiana, Dr. Warren Strickland and Dr. Isabella Strickland of Huntsville, Alabama and a cardiac center, Cardiology P.C. of Birmingham, Alabama, have agreed to pay a total of more than $1.1 million to resolve the allegations.
“Providers who line their pockets by ordering unnecessary tests increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said U.S. Attorney Brian T. Moran. “The government will continue to hold accountable medical professionals who undermine our healthcare system by accepting illegal kickbacks.”
According to the settlement agreements, between 2012 and 2013 the doctors and cardiac center were alleged to have accepted payments from now-defunct testing company Natural Molecular Testing Corporation (NMTC) in return for ordering genetic tests from NMTC, which NMTC then billed to Medicare. The scheme was alleged to be in violation of the Anti-Kickback Statute and the civil False Claims Act.
The providers have agreed to pay a total of more than $1.1 million. Specifically, Dr. Gregory Sampognaro will pay $519,750, Dr. Warren Strickland will pay $95,053, Dr. Isabella Strickland will pay $107,900, and Cardiology P.C. will pay $411,300 to resolve the government’s allegations. The claims resolved by the settlement are allegations only; there has been no determination of liability.
“Patients, taxpayers, and Federal health care programs are all victimized when providers work in exchange for kickbacks– as the government contended in this case,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to hold such providers accountable.”
NMTC declared bankruptcy in 2013. The Centers for Medicare and Medicaid Services has an unsecured claim against NMTC for $70 million, but has little chance of recovering those funds as there are few remaining assets.
The matter was investigated by the Department of Health and Human Services Office of Inspector General (HHS-OIG). The settlements were negotiated by Assistant United States Attorneys Kayla Stahman and Ashley Burns.
Philadelphia Woman Arrested in $100 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – An investment fund manager was arrested today in connection with an alleged $100 million securities fraud scheme, U.S. Attorney Craig Carpenito announced.
Brenda Smith, 59, of Philadelphia, Pennsylvania, is charged by complaint with four counts of wire fraud and one count of securities fraud. Smith was arrested in Philadelphia and is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
From February 2016 to August 2019, Smith allegedly orchestrated a scheme using her investment fund, Broad Reach Capital, in which she lied to investors about the assets and performance of the fund and falsely stated that she would invest their funds in particular trading strategies. Smith collected more than $100 million in investments. Instead of investing the money as she promised, she diverted millions of dollars of investor funds out of Broad Reach Capital for other purposes, including paying other investors. When confronted with redemption requests by several large investors in Broad Reach Capital, Smith failed to honor the redemption requests and lied about the status of their investment and the fund.
In one instance, Smith allegedly induced Victim 1 to invest in Broad Reach Capital, telling Victim 1 that it was a trade-focused investment fund that employed particular trading strategies. Smith provided a one-page summary “tear sheet” about Broad Reach Capital that contained purported historical performance information, including a claim that the fund had a 1.76 percent return in February 2018. In reality, Broad Reach Capital’s brokerage accounts lost approximately 50 percent of their value in February 2018. Smith also told Victim 1 that the assets of Broad Reach Capital were tens of millions of dollars higher than they actually were. Victim 1 invested millions of dollars. Smith did not invest Victim 1’s money in the trading strategies as promised, but instead transferred Victim 1’s money to non-Broad Reach Capital bank accounts that Smith controlled and paid other investors with Victim 1’s money. Victim 1 eventually made a redemption request for more than $46 million. Smith failed to pay any portion of the redemption request, providing a series of shifting false excuses and explanations for the lack of redemption.
The wire fraud counts are each punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The securities fraud count is punishable by a maximum of 20 years in prison and a fine of $5 million.
U.S. Attorney Carpenito credited special agents of the FBI Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s charges. He also thanked the U.S. Securities and Exchange Commission’s Philadelphia Regional Office, under the direction of Director G. Jeffrey Boujoukos, for its assistance.
The government is represented by Senior Trial Counsel Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Sentenced for Transporting Stolen Electronics Across State LinesRead the Press Release
BOSTON – A Pennsylvania man was sentenced yesterday in federal court in Worcester for his involvement in a series of burglaries and attempted burglaries of Target retail stores, including two in Massachusetts.
Elijah Aiken, 36, of Allentown, Pennsylvania was sentenced by U.S. District Court Judge Timothy S. Hillman to 15 months in prison, followed by two years of supervised release. Aiken was also ordered to make restitution to Target in the amount of $194,539. In May 2019, Aiken pleaded guilty to one count of conspiring to transport stolen goods in interstate commerce and two counts of interstate transportation of stolen goods.
From December 2014 until February 2015, Aiken conspired with his brother Akbar Aiken, and others, to break into numerous Target retail stores during early morning hours, usually by using portable blow torches to cut through the metal loading dock doors at the rear of the stores. Once inside, Aiken and his co-conspirators stole electronic devices valued at hundreds of thousands of dollars, including cellular phones and computer tablets. Aiken transported the stolen electronics across state lines in order to sell them to buyers in New York. Aiken and his co-conspirators burglarized Target stores in Easton and Westborough, Massachusetts, as well as in Pennsylvania and Connecticut. During that same time period, he also attempted to break into Target stores in New Hampshire, New Jersey and Pennsylvania. Aiken was arrested in 2015 after an unsuccessful attempted burglary at a Target store in Southington, Connecticut.
United States Attorney Andrew E. Lelling and Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistance was also provided by the Westborough and Easton police departments, the Torrington, Connecticut and Southington, Connecticut police departments and the Pennsylvania State Police. The case was prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office.Pahokee Resident Sentenced to More than Eight Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Jonathan Demario Collins, 33, of Pahokee, Florida was sentenced yesterday by U.S. District Judge Robin L. Rosenberg to 100 months in prison, to be followed by 3 years of supervised release, after having been convicted by a trial jury of being a felon in possession of a firearm (Case No. 17cr80084).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO) made the announcement.
According to the court record, including the indictment, case filings and evidence presented at trial, on February 7, 2016, Collins was arrested during a traffic stop on an arrest warrant for attempted first-degree murder, aggravated assault with a firearm and simple battery, in a Palm Beach County case.
The arrest was made by agents of the PBSO Tactical Unit, each of whom had been sworn in as ATF Task Force Officers. While PBSO tactical agents were conducting surveillance in Pahokee, they observed Collins exiting an apartment and entering the rear seat of a red Nissan Altima. Agents initiated a traffic stop and then removed Collins from the vehicle and placed him under arrest. A loaded, .40 caliber semi-automatic pistol was observed in the vehicle, near where Collins' was sitting. Law enforcement obtained a search warrant for the vehicle and recovered the pistol. DNA was collected from the firearm. An analysis confirmed that Collins’ DNA was located on the pistol. At the time of his arrest, Collins was a convicted felon and was prohibited from possessing a firearm.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and PBSO’s Tactical Unit in this matter. The case was prosecuted by Assistant U.S. Attorney John C. McMillan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov.
Ohio County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – David E. Beazel, of Triadelphia, West Virginia, has admitted to a firearms violation, United States Attorney Bill Powell announced.
Beazel, age 49, pled guilty to one count of “Unlawful Possession of a Firearm.” Beazel, a person prohibited from having a firearm, admitted to having three rifles, a shotgun, a pistol and a revolver in June 2017 in Ohio County.Beazel faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Ohio County Sheriff’s Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Oakland Man Sentenced to over Seven Years for Pharmacy RobberyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Michael E. Algiere, 33, of Oakland, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to 85 months in prison and three years of supervised release for interfering with commerce by robbery. Algiere pleaded guilty on April 24, 2019.
Court records reveal that on October 31, 2007, the defendant entered the Oakland Pharmacy in Oakland wearing a black ski mask, a hooded sweatshirt, and camouflage gloves. He went to the pharmacy counter holding a knife and demanded oxycodone from the pharmacist. The defendant absconded with several bottles of Roxicodone, Oxycontin, and Percocet.
The Maine State Police Crime Laboratory (MSPCL) found DNA on a ski mask and knife recovered by police at and near the robbery scene, loaded the DNA profile into the Combined DNA Index System (“CODIS”), but could not match it to a known offender profile in 2007. CODIS is a criminal justice database that contains DNA profiles of convicted offenders and arrestees. Because participating forensic laboratories regularly add DNA profiles to CODIS, the MSPCL routinely compares unknown profiles from unsolved cases against the known profiles in CODIS. In February 2017, a CODIS comparison revealed that the DNA obtained from the ski mask and knife matched DNA collected from the defendant. The DNA match was confirmed after federal investigators collected a sample of the defendant’s DNA.
The case was investigated by the Oakland Police Department, the FBI, and the MSPCL.
O.C. Physician Assistant Arrested on Federal Charges Alleging He Wrote Opioid Prescriptions to Drug Dealers without Medical NeedRead the Press Release
SANTA ANA, California – A physician assistant who practiced at a Fountain Valley clinic was arrested today on an 11-count federal grand jury indictment charging him with conspiring to issue prescriptions for the highly addictive opioid painkiller oxycodone, without a medical purpose, to drug dealers in exchange for cash, knowing the drugs would be sold on the street.
Raif Wadie Iskander, 53, of Ladera Ranch, was arrested at his residence this morning. He is scheduled to make his initial court appearance this afternoon and he also will be arraigned on the charges in United States District Court in Santa Ana.
According to the indictment, from October 2018 until April 2019, Iskander wrote prescriptions for “patients” he had never met or examined, including an undercover law enforcement officer. Iskander allegedly provided to drug brokers multiple paper prescriptions that he had signed, but with the patient names left blank, to be filled in by the drug brokers later.
In exchange for cash, Iskander wrote fraudulent oxycodone prescriptions to co-defendants Johnny Gilbert Alvarez, 39, a.k.a. “M.J.,” of Santa Ana, and Adam Anton Roggero, 36, of Costa Mesa, who sold the prescribed drugs on the street as well as to an undercover officer, the indictment alleges.
All three defendants have been charged with one count of conspiracy. Iskander also has been charged with two counts of intentionally distributing oxycodone without a medical purpose. In addition to the conspiracy charge, Alvarez faces felony counts of illegally distributing methamphetamine, fentanyl, and oxycodone. Roggero also has been charged with two felony drug distribution counts.
If convicted of all charges, Iskander would face a statutory maximum sentence of 60 years in federal prison. Alvarez would face a statutory maximum sentence of life in prison and a mandatory minimum sentence of 10 years’ imprisonment. Roggero would face a statutory maximum sentence of 60 years in prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the Drug Enforcement Administration, the Costa Mesa Police Department, and the California Department of Health Care Services.
This case is being prosecuted by Assistant United States Attorney Rosalind Wang of the Santa Ana Branch Office.
North Carolina Office Manager Sentenced to Prison for Employment Tax FraudRead the Press Release
A New London, North Carolina, woman was sentenced to 14 months in prison today for federal employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents, from approximately 1992 through at least September 2016, Terra Ferguson was employed as an office manager at a pediatric office in Randolph County, North Carolina. As office manager, Ferguson had complete control over the office’s finances. Ferguson was also responsible for collecting, accounting for, and paying over to the Internal Revenue Service (IRS) payroll taxes that were withheld from the wages of the business’ employees. From March 2011 through September 2016, Ferguson withheld approximately $78,937 in payroll taxes from employee paychecks and willfully failed to pay that money to the IRS. Ferguson also failed to pay $35,472 for the employer’s share of employment taxes. Instead of paying these taxes to the IRS, Ferguson paid her personal credit card bills, funded personal business ventures involving a mountain cabin rental and a bar, paid for personal vacations, and issued checks to herself totaling $1.4 million, all from the business’ bank account.
Additionally, Ferguson prepared false individual income tax returns for her employer that falsely underreported gross receipts and inflated mortgage interest deductions, causing an additional tax loss of over $250,000. The total tax loss resulting from Ferguson’s fraudulent conduct is approximately $374,101.
On May 17, 2019, Ferguson pleaded guilty to one count of failing to collect, account for, or pay over payroll taxes for the employment tax quarter ending Dec. 31, 2015.
In addition to the term of imprisonment imposed, Ferguson was ordered to serve three years of supervised release and to pay $374,101 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mara Strier and Alexander Effendi of the Tax Division and Assistant United States Attorney Frank Chut, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Office Manager Sentenced to Prison for Employment Tax FraudRead the Press Release
WASHINGTON – A New London, North Carolina, woman was sentenced to 14 months in prison today for federal employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents, from approximately 1992 through at least September 2016, Terra Ferguson was employed as an office manager at a pediatric office in Randolph County, North Carolina. As office manager, Ferguson had complete control over the office’s finances. Ferguson was also responsible for collecting, accounting for, and paying over to the Internal Revenue Service (IRS) payroll taxes that were withheld from the wages of the business’ employees. From March 2011 through September 2016, Ferguson withheld approximately $78,937 in payroll taxes from employee paychecks and willfully failed to pay that money to the IRS. Ferguson also failed to pay $35,472 for the employer’s share of employment taxes. Instead of paying these taxes to the IRS, Ferguson paid her personal credit card bills, funded personal business ventures involving a mountain cabin rental and a bar, paid for personal vacations, and issued checks to herself totaling $1.4 million, all from the business’ bank account.
Additionally, Ferguson prepared false individual income tax returns for her employer that falsely underreported gross receipts and inflated mortgage interest deductions, causing an additional tax loss of over $250,000. The total tax loss resulting from Ferguson’s fraudulent conduct is approximately $374,101.
On May 17, 2019, Ferguson pleaded guilty to one count of failing to collect, account for, or pay over payroll taxes for the employment tax quarter ending Dec. 31, 2015.
In addition to the term of imprisonment imposed, Ferguson was ordered to serve three years of supervised release and to pay $374,101 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mara Strier and Alexander Effendi of the Tax Division and Assistant United States Attorney Frank Chut, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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New Castle Woman Defrauded Social SecurityRead the Press Release
PITTSBURGH, Pa. - A resident of New Castle, PA, pleaded guilty in federal court to charges related to Social Security fraud, United States Attorney Scott W. Brady announced today.
Shawna Stelter, 37, pleaded guilty to three counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that, when applying for and receiving Supplemental Security Income ("SSI") Benefits, Stelter failed to disclose that her husband was part of her household, and, as a result, received $26,917.55 in Supplemental Security Income benefits to which she knew she was not entitled, from June of 2014 to September of 2016. The court was further informed that Stelter made a false statement on her Redetermination Summary October 30, 2014, when she further claimed that her husband was not part of her household, and that her household only consisted of herself and her two children.
Judge Horan scheduled sentencing for Dec. 17, 2019. The law provides for a total sentence of 20 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Stelter remains on bond pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Social Security Administration, Office of the Inspector General conducted the investigation leading to prosecution of Stelter.
Monongalia County woman admits to role in cocaine and heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Teisha Primm, of Morgantown, West Virginia, has admitted to her involvement in a cocaine and heroin distribution operation, United States Attorney Bill Powell announced.
Primm, age 30, pled guilty to one count of “Aiding and Abetting in the Distribution of Heroin within 1000 Feet of a Protected Location.” Primm admitted to selling heroin near West Virginia University in July 2018 in Monongalia County.Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Michigan Man Sentenced to 54 Months in Scheme to Acquire Cell PhonesRead the Press Release
United States Attorney Joe Kelly announced today that Gage Davis, 37, of Detroit, Michigan, was sentenced Monday in federal court in Omaha, Nebraska, for identity theft and the fraudulent use of Social Security numbers to obtain cell phones from retail outlets in Central Nebraska. Senior United States District Judge Laurie Smith Camp sentenced Davis to 54 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a three-year term of supervised release and pay restitution in the sum of $22,126.
From December 2017 through June 2018, Gage and another used stolen identifications of credit worthy individuals to purchase high-end cellphones at retail stores in Kearney, Holdrege, Norfolk, Beatrice, Columbus, Grand Island, Hastings, Ainsworth and O’Neill, Nebraska. Gage provided counterfeit driver’s licenses and Social Security numbers belonging to actual people to stores to qualify for credit. He was arrested on June 1, 2018, at the U.S. Cellular store in Ainsworth. Counterfeit identification documents were found in his car.
This case was investigated by the Federal Bureau of Investigation, the Social Security Administration - Office of Inspector General, the Nebraska States Patrol, Sheriff’s Offices of Brown County and Holt County Nebraska and the Police Departments in Lexington, Kearney, Holdrege, Norfolk, Beatrice, Columbus, Grand Island and Hastings.
Mexican National Who Has Been Removed from the U.S. 5 Times Charged with Illegal ReentryRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on August 13, 2019, a federal grand jury in New Haven returned an indictment charging ARMANDO MACHORRO-ROJAS, 42, a citizen of Mexico last residing in Norwalk, with one count of illegally reentering the U.S. after being deported.
Machorro-Rojas appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charge.
As alleged in court documents and statements made in court, on two occasions in March 2007, Machorro-Rojas had encounters with U.S. Border Patrol that resulted in his voluntary to Mexico. On March 23, 2012, Machorro Rojas was arrested by Norwalk Police and charged with operating a vehicle without a license. On April 26, 2012, he was deported from the U.S. to Mexico.
It is further alleged that, on March 29, 2015, Machorro-Rojas was encountered by U.S. Border Patrol near Bisbee, Arizona. On April 15, 2015, he was again removed to Mexico.
It is further alleged that, on June 6, 2015, Machorro-Rojas was encountered by U.S. Border Patrol near Santa Teresa, New Mexico. He was subsequently charged in the District of New Mexico with one count of reentry of a removed alien. He pleaded guilty to the offense, was sentenced to time served and, on July 10, 2015, was removed to Mexico.
On May 31, 2019, Machorro-Rojas was arrested by Norwalk Police and charged with burglary in the third degree, risk of injury, larceny in the third degree, breach of peace in the second degree, and interfering/resisting arrest. It is alleged that an immigration detainer that was lodged with the state authorities was not honored, and Machorro-Rojas was released on bond on July 5.
Machorro-Rojas has been detained since August 9, 2019, after he was arrested by Immigration and Customs Enforcement officers.
If convicted of the charge of illegal reentry, Machorro-Rojas faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Member of Montgomery Drug Trafficking Organization Convicted of Conspiracy, Drug, and Gun ChargesRead the Press Release
Montgomery, Alabama – On Friday, August 23, 2019, Cyrus Phyfier, a 51-year-old resident of Montgomery, was found guilty on multiple drug and firearm related charges, announced United States Attorney Louis V. Franklin, Sr. A federal jury convicted Phyfier of all ten counts in his indictment after a weeklong trial.
Evidence presented at trial showed that Phyfier was a member of a drug trafficking organization that distributed large amounts of illegal drugs in Montgomery starting sometime in 2013 and continuing through January 2016. Specifically, Phyfier was convicted of conspiracy to distribute and possession with intent to distribute powder cocaine, crack cocaine, and marijuana; possession of a controlled substance with intent to distribute; being a felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking crime. The other charged members of the conspiracy previously pled guilty in federal court.
Phyfier’s sentencing hearing is scheduled for December 5, 2019 where he faces 25 years to life on the conspiracy count, up to five years to be served consecutively for being in possession of a firearm in furtherance of a drug trafficking crime, and he may be eligible for an additional 15 years under the Armed Career Criminal Act for having three or more convictions for serious drug offenses.
The Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Alabama Law Enforcement Agency (ALEA), and the Montgomery Police Department investigated this case, with assistance from the State of Alabama Attorney General’s Office, the Montgomery County Sheriff’s Office, and the United States Marshals Service (USMS). U.S. Attorney Franklin commended the investigative agencies for their collaborative effort in bringing the organization to justice.
This case was prosecuted by Assistant United States Attorneys Curtis Ivy, Jr., Stephanie Billingslea, Alice LaCour, and Brett Talley.
Maryland Man Sentenced to 30 Years in Prison for September 1999 Kidnapping and Sexual Assault of Somerset County, PA GirlRead the Press Release
JOHNSTOWN, Pa. - A resident of Cumberland, MD, has been sentenced in federal court to 30 years in prison and ordered to pay $5,000 assessment under the Justice for Victims of Trafficking Act on his conviction of kidnapping and aggravated sexual abuse of person under 12 years old, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Timothy D. Nelson, Jr., 50.
According to information presented to the court, on September 19, 1999, Nelson drove into a Cairnbrook, Pennsylvania, neighborhood and drove past a group of three minor females multiple times. The group was walking when the vehicle came by one more time, stopped, and Nelson exited his car and asked them a question. As the minor victim, a 10-year old girl, began to answer, Nelson grabbed the minor victim and placed her in the car through the driver’s side and exited the area. Nelson then placed the minor victim on the floor of the front passenger seat. While driving away from the area of the abduction, Nelson threatened the minor victim with a handgun pointing it at her head. The minor victim was screaming and Nelson struck the minor victim with his hand in an attempt to quiet her.
At some point, Nelson drove the car and the minor victim into West Virginia. When Nelson eventually stopped the car, he forced the minor victim to perform a sex act. Afterwards, Nelson gave the minor victim a paper bag and napkin to clean herself with. Nelson also cleaned himself and then discarded the bag out the window.
Nelson then drove the vehicle in the direction of Markleysburg, Pennsylvania, and shortly after crossing the Pennsylvania line from West Virginia, dropped the minor victim off on the side of the road, instructed her to count to 100, and then proceed to a location to call her mother. Subsequently, another vehicle happened upon the minor victim who was in distress and offered her assistance. Law enforcement responded, to include the Pennsylvania State Police.
The minor victim was subsequently able to direct law enforcement to the location of the sexual assault and the brown paper bag and napkin were recovered which appeared to contain evidence of the above-described assault. The evidence was subsequently forensically examined
and determined to contain multiple partial fingerprints and DNA extracted from the bodily fluids. Certain of the recovered partial prints were identified as originating from the minor victim. There remained unidentified latent prints and a search through the Integrated Automated Fingerprint Identification System (IAFIS), did not return any results at that time. Likewise, the FBI Lab was successfully able to identify a suitable DNA profile at that time, but when compared to the FBI Combined DNA Index System (CODIS) database, no matches were detected.
In April 2004, the FBI Laboratory reported that a DNA profile generated from evidence from a different kidnapping / sexual assault of another minor female, which occurred in September 1988 in Hagerstown, Maryland, was a match to the DNA profile of the 1999 Cairnbrook, Pennsylvania kidnapping event. This match was made from the FBI CODIS database, but the identity of the perpetrator of these crimes was still unknown at that time.
Over the years, advancements were made to IAFIS and the new fingerprint identification system called Next Generation Identification system (NGI) came into existence.
In the Fall of 2018, the partial prints obtained from the brown paper bag and napkin were re-submitted to NGI to search for a possible match. NGI identified a possible match with a person identified as Timothy David Nelson. The FBI Laboratory subsequently confirmed the partial prints as a match to Timothy David Nelson, Jr., who was living in Maryland.
On January 7, 2019, an arrest warrant was issued by the Commonwealth of Pennsylvania charging Nelson with multiple offenses to include, but not limited to, Kidnapping and Aggravated Indecent Assault. Also, a federal search warrant was issued for Nelson’s DNA.
On January 8, 2019, Nelson arrived at the Cumberland (MD) City Police Department and the Pennsylvania arrest warrant and the federal DNA search warrant were executed. Subsequent forensic analysis proved that Nelson’s DNA was a match for the 1999 Cairnbrook kidnapping on September 19, 1999, as well as a match to two separate kidnappings/sexual assaults on minor females from 1988 and 1989 in Maryland.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation that led to the successful prosecution of Nelson.
Mapleton Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Daniel Easler, 43, of Mapleton, Maine, pleaded guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, on the evening of December 4, 2018, the Caribou Police Department received a call from a citizen stating that there was a vehicle off the road in a snow bank. Law enforcement responded to the scene. There was no one in the vehicle but there were footprints in the snow leading away from the vehicle. Officers followed the footprints and found Easler, a convicted felon, lying in the snow. A search of the defendant revealed multiple firearms and ammunition. One of the firearms had previously been reported as stolen.
The defendant faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Caribou Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine State Police.
Manhattan U.S. Attorney Announces Charges Against Jose Alvarez for 1999 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), announced the unsealing of a superseding Indictment charging JOSE ALVAREZ, a/k/a “Ignacio Alvarez,” with the 1999 murder of Jose Miguel Mendez. ALVAREZ was previously arrested in the Dominican Republic and was extradited to the Southern District of New York last Friday. He was presented before U.S. Magistrate Judge Katharine H. Parker yesterday and detained. The case is assigned to U.S. District Judge Kimba M. Wood.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Jose Alvarez participated in the heinous robbery and murder of Jose Miguel Mendez. Alvarez was extradited from the Dominican Republic and now faces charges in a U.S. court for this terrible crime.”
Special Agent in Charge John B. DeVito said: “Jose Alvarez is alleged to have participated in a crime of violence and murder of Jose Miguel Mendez approximately 20 years ago. Through the diligent and steadfast efforts of ATF agents working alongside our state, local, and federal partners, he will be before a judge and finally face justice for his crimes. I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”
According to the allegations in the Indictment, and statements made in court filings and during court proceedings[1]:
ALVAREZ, along with other individuals, planned to rob and kill Jose Miguel Mendez to obtain money to invest in a drug robbery in Puerto Rico. On the night of the robbery and murder, ALVAREZ and his co-conspirators ambushed Mendez inside an apartment in the Bronx, where they restrained him with duct tape, burned him, and questioned him. Ultimately, ALVAREZ and one of his co-conspirators took Mendez to a location in Upper Manhattan, where Mendez was shot in the head, resulting in his death.
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ALVAREZ, 54, of the Dominican Republic, is charged with one count of causing the death of another through the use of a firearm in connection with a crime of violence and a drug trafficking crime, and aiding and abetting the same, which carries a mandatory minimum sentence of five years in prison and maximum sentence of life in prison; and one count of killing another, and aiding and abetting the same, while engaged in drug trafficking, which carries a mandatory minimum sentence of 20 years in prison and maximum sentence of life in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the excellent work of the ATF, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York. Mr. Berman also thanked Dominican authorities, the Office of International Affairs of the Justice Department’s Criminal Division, and the United States Marshals Service for their assistance.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sarah Krissoff and Michael Maimin are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Malaysian Native Guilty of Installing Camera in Airplane BathroomRead the Press Release
HOUSTON – The 50-year-old Malaysian man recently charged with video voyeurism has appeared in federal court and admitted his guilt, announced U.S. Attorney Ryan K. Patrick.
Choon Ping Lee admitted he installed a video recording device in the first class lavatory of United Airlines Flight 646 from San Diego, California, to Houston on May 5, 2019.
Another first class passenger had discovered the device in the bathroom after she saw a strange object with a blue blinking light hanging near the door. She gave it to flight attendants who discovered it was a recording device. On the device, authorities observed Lee’s clothing which led to his identification.
He was taken into custody upon his arrival in Houston Aug. 7, 2019, and has remained in custody since that time.
U.S. Magistrate Judge Christina Bryan accepted Lee’s plea today and imposed a $6,000 fine and two months imprisonment. At the hearing, the court considered a written statement that the passenger who discovered the camera had submitted which detailed how the incident has impacted her sense of safety and security. In it, she emphasized that Lee’s act was not harmless.
Not a U.S. citizen, Lee also is expected to face removal proceedings.
The FBI conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.
Kingsmen Regional President, Convicted by A Federal Jury of Racketeering, Sentenced to 240 Months in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – U.S. Attorney James P. Kennedy, Jr. announced today that Timothy Enix a/k/a Blaze, 60, was sentenced to serve 240 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant, a Kingsmen Motorcycle Club (KMC) member and Florida/Tennessee Regional President, was sentenced for his conviction following a four-month jury trial of RICO conspiracy, possession of firearms in furtherance of a crime of violence, and using and maintaining premises for drug distribution.
According to court documents and evidence presented by the government at trial, beginning in 2013, certain KMC members wanted to establish the KMC as a “1% Club.” The “1%” refers to a previous statement by a representative of the American Motorcycle Association that 99 percent of motorcyclists were law-abiding citizens with the remaining one percent engaged in certain activities such as drug and firearm trafficking and acts of violence. The defendant, and others, participated in, directly and indirectly, acts of murder, assault, robbery, kidnapping, drug trafficking, obstruction of justice, and witness tampering. The KMC operated clubhouses in New York, Pennsylvania, Tennessee, and Florida, all of which were used for unlawful purposes, including drug distribution and firearms possession.
The KMC also committed numerous acts of violence, including the following:
• The September 6, 2014, murders of KMC members Paul Maue and Daniel “DJ” Szymanski. The two were murdered behind the North Tonawanda KMC Chapter clubhouse;
• On June 7, 2013, the KMC forcibly shut down the Springville KMC Chapter and stripped members of their colors because they were non-compliant members. Brandishing firearms, KMC members struck a victim in the head with a blunt object and stole items from the Springville clubhouse. They then used bleach to clean areas where the victim bled and cut and removed portions of the rug, which contained blood; and,
• On September 12, 2009, a female victim was punched repeatedly in the face by a KMC member and held against her will for three days to conceal her facial injuries from police.
“Following the 2014 murders in North Tonawanda, this Office decided that enough was enough and that it was time to put an end to this criminal organization for good,” stated U.S. Attorney Kennedy. “With today’s sentencing of the final KMC member, I can say—thanks to the prosecutors in my office and our law enforcement partners across the region and across the country—‘mission accomplished.’ With two KMC members, including the National President, receiving multiple life sentences, and 18 other KMC members receiving prison sentences of up to 20 years, other outlaw motorcycle gangs and criminal organizations should take notice. 1%’ers are not welcome in the Western District of New York, and if you come here and commit crimes, then know that you will be 100% dismantled.”
The investigation was led by the FBI’s Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert. Assisting in the investigation were the FBI Knoxville, Tennessee and Jacksonville, Florida Field Offices; Homeland Security Investigations; the North Tonawanda Police Department; the Niagara County Sheriff’s Office; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the Town of Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and the Hamburg Police Department. Trial Attorney Marianne Shelvey of the DOJ Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph Tripi and Brendan Cullinane for the Western District of New York prosecuted the case.
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Justice Department Files Employment Discrimination Lawsuit Against Baltimore County Alleging Race Discrimination by Its Police Department in the Hiring of Entry-Level Police Officers and CadetsRead the Press Release
The Department of Justice announced today that it has filed an employment discrimination lawsuit under Title VII of the Civil Rights Act of 1964 (Title VII) against Baltimore County and the Baltimore County Police Department (BCPD). The lawsuit alleges that since Jan. 1, 2013, BCPD has engaged in unintended employment discrimination against African American applicants for entry-level police officer and cadet positions by making hiring decisions based on the results of hiring examinations that were not job-related and that disproportionately excluded African American applicants. Through this lawsuit, the United States seeks a Court order that would require BCPD to utilize selection procedures that comply with Title VII, and to provide individual remedies to African American former applicants who are shown to be entitled to them.
“Employers must be mindful that an employment selection device, like a test, must be shown to be job-related if it disproportionately excludes members of one of Title VII’s protected groups,” stated Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division.
Title VII is a federal law that prohibits discrimination in employment on the basis of race, color, sex, national origin, and religion. More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Ithaca Man Arrested for Attempting to Entice and Coerce Minors into SexRead the Press Release
SYRACUSE, NEW YORK – Jeffrey Blake, age 49, of Ithaca, New York, was arraigned yesterday on a criminal complaint charging him with attempting to entice and coerce two minors into a sexual act.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint charges Blake with attempting to entice and coerce two minor females, whom he believed to be 9 years old and 13 years old, to engage in various sexual acts with him. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Blake carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Blake was arraigned yesterday in Johnson City, New York, before United States Magistrate Judge Thérèse Wiley Dancks, and detained pending further proceedings.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare.
Illinois Resident Convicted at Trial in South Florida for Carrying Out a $2 Million Fraud Scheme Targeting Nigerian Oil CompanyRead the Press Release
On August 23, 2019, Oyeyemi Olatunji Owagboriaye, 63, of Chicago, Illinois, was convicted of wire fraud, in violation of Title 18, United States Code, Section 1343 (Case No. 18cr20361). A jury returned a guilty verdict following a five-day trial before United States District Judge Kathleen M. Williams, in Miami, Florida.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the Florida Office of Financial Regulation (OFR), made the announcement.
The evidence presented at trial established that Owagboriaye participated in a $2 million dollar advance fee scheme targeting a Nigerian oil company called Zone 4. In particular, Owagboriaye’s partner, Vincent Zubero, persuaded Zone 4 to hire him to raise a $45 million dollar loan to refinance an oil tank farm in Nigeria. Zone 4 would provide a $2 million “equity contribution” toward the loan, which would be held in escrow until the first tranche of the loan was funded. Instead, however, Zubero and the defendant split the proceeds of the $2 million equity contribution and never funded the loan. Owagboriaye’s portion of the equity contribution was more than $835,000. Owagboriaye and Zubero quickly covered their tracks by signing a bogus “memorandum of understanding” in which they purported to agree that the $835,000 being transferred to Owagboriaye was for the purpose of supporting a phony “trade platform” by which Owagboriaye would raise the financing for the oil tank farm project. Then, Owagboriaye created a phony invoice for dump trucks to cover up the fact that Zubero was wiring him $835,000 of Zone 4’s money. Owagboriaye also created phony bank instruments purporting to establish his control over hundreds of millions of dollars to be used for Zone 4’s loan. In reality, Owagboriaye was spending Zone 4’s money, including a more than $300,000 transfer to himself in Nigeria, $190,000 in cash withdrawals, and thousands more on personal expenses.
Owagboriaye is scheduled for sentencing on October 31, 2019 at 2:00 p.m. and faces a maximum possible sentence of 20 years in prison.
Zubero previously pled guilty for his participation in the wire fraud scheme. He is scheduled to be sentenced on September 12th, 2019 at 2 p.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and OFR in this matter. This case is being prosecuted by Assistant U.S. Attorneys Amanda Perwin, Marty Elfenbein, and Roger Cruz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov.
Illegal Alien Indicted on Firearms ChargesRead the Press Release
LAREDO, Texas – A 32-year-old Mexican national has been indicted for illegally possessing a firearm and ammunition, announced U.S. Attorney Ryan K. Patrick.
Jaime Cruz-Romero was originally charged by criminal complaint. Today, the grand jury returned the one-count indictment. He is expected to appear for his arraignment before U.S. Magistrate Judge Sam S. Sheldon in the near future.
On or about Aug. 10, 2019, Cruz-Romero was found in possession of a firearm and ammunition during a traffic stop, according to the charges.
The complaint alleges that on or about Aug. 10, 2019, Cruz-Romero was driving a 2008 Hummer H3 when law enforcement stopped him for disregarding a traffic signal. He did not have any identification, according to the charges.
Authorities then searched the vehicle and found a 9-millimeter pistol and a magazine containing ammunition.
If convicted, Cruz-Romero faces up to 10 years in prison and a maximum $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department conducted the investigation. Assistant U.S. Attorney Adam E. Harper is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Houston, Texas Agrees to Implement Comprehensive Measures Aimed at Eliminating Sanitary Sewer Overflows and Illegal Discharges from Wastewater Treatment PlantsRead the Press Release
In a settlement agreement with the U.S. Environmental Protection Agency (EPA) and the Texas Commission on Environmental Quality (TCEQ), the city of Houston, Texas, has agreed to implement a comprehensive set of corrective measures and improvements to the city’s sewer system to resolve longstanding problems with sanitary sewer overflows (SSOs) and discharges into various water bodies of pollutants in excess of permitted limits from the city’s 39 wastewater treatment plants.
The agreement, upon final approval by a U.S. District Court Judge, will resolve the city’s noncompliance with the Clean Water Act (CWA) and provisions of the Texas Water Code (TWC). These violations were alleged in a joint Complaint filed on Sept. 20, 2018, by the U.S. Department of Justice, on behalf of EPA, and the state of Texas, on behalf of the TCEQ. The city also has agreed to pay a civil penalty of $4.4 million, which will be shared equally with the State of Texas.
“The settlement, done in partnership with the state of Texas, will see that the city of Houston attains compliance with state and federal environmental laws by expanding its wastewater treatment capacity and thus reducing sewage overflows into city streets and waterways,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “The city should have acted faster to make the necessary infrastructure investments to avoid public health problems but today’s settlement is a substantial step towards meeting the legal requirements enacted to protect the public from unsanitary conditions, dangerous bacteria, and the contagious diseases that pose intolerable risks to the city’s residents and visitors.”
“Fixing Houston’s sewer system will be a massive undertaking. But it is necessary to protect public health and the environment,” said Susan P. Bodine, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance. “EPA and the State of Texas worked with the city to develop a comprehensive solution that will improve the quality of life of Houston’s citizens as well as the quality of water in and around Houston.”
“This settlement sets a roadmap of what needs to be done to preserve health and safety for millions of Texans and protect our state’s water resources for generations to come,” said Texas Attorney General Ken Paxton. “We will continue working alongside our federal partner to assure the city of Houston fulfills all its obligations under this agreement and the laws of Texas.”
The city of Houston operates one of the largest sewer systems in the nation, which serves nearly two million people. The system includes more than 6,000 miles of sewer lines, 390 lift stations, and more than 120,000 manholes.
To come into compliance with the CWA and the TWC, the city will implement over a period of 15 years extensive measures to prevent SSOs and effluent violations, at an estimated cost of $2 billion.
Preventing raw sewage in the form of SSOs from going onto the streets of the city and from entering waters of the United States and waters of the state eliminates a significant threat to human health and the environment. These discharges have contributed to bacteria contamination of Houston water bodies, degraded water quality, and contain viruses that may cause illnesses.
During implementation of the work required under the consent decree the release of raw sewage from the city’s sewer system will be reduced by approximately six million gallons a year. Currently, this sewage is entering various water bodies in, around and near the city, including the Buffalo Bayou and the Houston Ship Channel.
Under the consent decree, Houston will address the insufficient capacity of its sewer system in identified areas where large-volume SSOs have occurred during major rain events. In addition, some non-wet weather SSOs occurring in the city over the years have been caused by defective conditions such as cracked and broken sewer lines. The city has agreed to conduct a system-wide inspection of all its gravity sewer lines and manholes to assess their structural condition. The city will annually remediate no less than 150 miles of sewer lines based upon the results of the inspection and assessment. Further, to address another major cause of SSOs in the form of blockages caused by debris and fats, oil and grease (FOG), the city will implement two major cleaning programs. Under the first program, the city will target SSO-prone areas for cleaning in the first two years and complete cleaning of all gravity sewer lines in the first 10 years of the consent decree with additional cleaning requirements thereafter. A second cleaning program will target areas that require more frequent cleaning to prevent SSOs from occurring, primarily due to FOG.
Finally, the city has agreed to implement a number of measures as early action projects to address SSOs and effluent violations within the first few years of the consent decree. Several of the early action projects involve wastewater treatment plants. The city, the United States and the state identified 10 wastewater treatment plants that have experienced a significant number of effluent violations, including such pollutants as E. Coli, ammonia and total suspended solids. The city will implement improvements and repairs that will address the causes of violations at these plants, as well as implement a maintenance program to cover all of its wastewater treatment plants. As additional early action projects, the City will renew / replace more than 100 lift stations and more than 35 miles of the sewer system’s force main sewer lines, which transmit wastewater under pressure.
The consent decree was lodged in the U.S. District Court for the Southern District of Texas, Houston Division. The consent decree is subject to a 30-day public comment period before the court can give final approval and enter the consent decree as a final judgment, at which time it will become effective. The consent decree is available at www.justice.gov/enrd/consent-decrees.
For more information, visit: https://www.epa.gov/enforcement/city-houston-clean-water-act-settlement-information-sheet.
Hattiesburg Felon Pleads Guilty under Project EJECT to Illegally Possessing FirearmRead the Press Release
Jackson, Miss. – Sacory Brown, 28, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On March 8, 2018, Brown was found in possession of a firearm during a traffic stop. He was previously convicted of burglary of a dwelling in Forrest County in 2012. He was on state parole at the time of his 2018 arrest.
Brown will be sentenced by Judge Starrett on November 21, 2019 at 10:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hattiesburg Police Department. It is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Harrison County man sentenced for role in methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Byron Higginbotham, of Clarksburg, West Virginia, was sentenced today to 14 months incarceration for his role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Higginbotham, age 36, pled guilty to one count of “Possession of Unregistered Firearm” in March 2019. Higginbotham admitted to having an unregistered .20 caliber sawed-off shotgun in March 2018 in Harrison County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Gilmer County man admits to role in a methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremiah Lee Carr, of Glenville, West Virginia, has admitted to his involvement in methamphetamine distribution operation, United States Attorney Bill Powell announced.
Carr, age 32, pled guilty to one count of “Aiding and Abetting Distribution of Methamphetamine in Proximity to a Protected Location.” Carr admitted to selling methamphetamine near Glenville State College in September 2018 in Gilmer County.Carr at least one year and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Gavin Reyes Duenas Sentenced to Prison in Drug Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant GAVIN REYES DUENAS, age 33, from Talofofo, was sentenced in the United States District Court of Guam to 87 months imprisonment for Attempted Possession with Intent to Distribute Fifty Grams or More of Methamphetamine, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered five years of supervised release following imprisonment, 100 hours of community service, and a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On November 19, 2016, the U.S. Postal Inspector and the Drug Enforcement Administration intercepted two packages in the mail. The packages were found to contain approximately 3,113.9 net grams of methamphetamine hydrochloride (“ice”). Further investigation revealed that Duenas used his family’s post office box to receive the ice. Once in his possession, Duenas intended to distribute the drug on island. He also expected to receive some of the drug as payment from his supplier. At the time of his arrest, Duenas possessed methamphetamine pipes, syringes, scales, Ziploc baggies and $43,335.00 in U.S. currency.
U.S. Attorney Anderson stated, “Federal law enforcement continues to aggressively pursue drug trafficking activity on Guam. This case demonstrates the benefits of effective partnerships and the results of long term investigations. Our office vigorously enforces federal drug laws at every opportunity. We will also obtain the forfeiture of illegal proceeds whenever possible. While our distance from the mainland is great, we will similarly seek any off island sources of supply and hold them accountable.” This case was the result of a joint investigation by the U.S. Postal Service and the Drug Enforcement Administration. The case was prosecuted by Rosetta L. San Nicolas, an Assistant United States Attorney in the District of Guam.
Fort Wayne Man Sentenced to 159 Months in PrisonRead the Press Release
FORT WAYNE – Juan DeLaCruz, age 29, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly Brady after pleading guilty to possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Thomas L. Kirsch II.
DeLaCruz was sentenced to 159 months in prison, with no supervised release to follow. DeLaCruz was in the United States illegally, and he will be deported after his prison term.
According to documents in this case, DeLaCruz and two codefendants were distributing large amounts of heroin and methamphetamine, and DeLaCruz personally possessed three pistols in furtherance of his drug dealing.
This case was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Postal Inspection Service; the Allen County Drug Task Force; and the Allen County Police Department. This case was handled by Assistant U.S. Attorney Anthony W. Geller.
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Former Uber Self-Driving Car Executive Indicted for Alleged Theft of Trade Secrets from GoogleRead the Press Release
SAN JOSE - A federal grand jury in San Jose has indicted Anthony Scott Levandowski on theft of trade secrets charges, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
The indictment was returned on August 15, 2019, and unsealed on August 26, 2019. The indictment alleges Levandowski, 39, of Marin County, was a Google engineer and one of the founding members of the group that worked on Google’s self-driving car project. Levandowski worked on the project from 2009 until he resigned from Google without notice on January 27, 2016.
“All of us have the right to change jobs,” said U.S. Attorney Anderson, “none of us has the right to fill our pockets on the way out the door. Theft is not innovation.”
At the time of his resignation, Levandowski was the lead of Google’s Light Detecting and Ranging (LiDAR) engineering team. The indictment alleges that in the months before his departure, Levandowski downloaded from secure Google repositories numerous engineering, manufacturing, and business files related to Google’s custom LiDAR and self-driving car technology. The files downloaded included circuit board schematics, instructions for installing and testing LiDAR, and an internal tracking document. The indictment also alleges that at the time he took the files, Levandowski was involved with two companies competing with Google in the self-driving space: Tyto LiDAR LLC and 280 Systems, Inc., the latter of which would become Ottomotto. Ottomotto acquired Tyto in May 2016, shortly after Uber Technologies, Inc. agreed to acquire Ottomotto and hire Levandowski.
The indictment charges Levandowski with 33 counts of theft and attempted theft of trade secrets, in violation of 18 U.S.C. § 1832. He is scheduled to be arraigned on the charges on August 27, 2019, at 1:30 p.m. before U.S. Magistrate Judge Nathanael M. Cousins.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 10 years and a fine of $250,000, plus restitution, for each violation of 18 U.S.C. § 1832. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s new Corporate Fraud Strike Force and is the result of an investigation by the FBI.
Former School Bus Driver Charged with Possession of Videos and Images of Minors Engaged in Sexually Explicit ConductRead the Press Release
PITTSBURGH – A former bus driver for the Monessen School District has been indicted by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on Aug. 20 and unsealed yesterday, named Jack Brian Laforte, age 54, of Monessen, Pennsylvania, as the sole defendant.
According to Indictment, on or about June 14, 2019, Laforte possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
If you have any information involving this defendant, please call the Homeland Security Investigations Tip Line at 866-347-2423.
The law provides for a maximum total sentence of 10 years in prison, a maximum term of supervised release of life, and a fine of $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Owner of Two Downtown Houston Bars Set to Appear in Court for Tax and Bankruptcy FraudRead the Press Release
HOUSTON – The former owner of SPORTS @ THE B.U.S. has been indicted on tax and bankruptcy fraud charges, announced U.S. Attorney Ryan K. Patrick.
Todd Dixon will appear in court for a counsel determination hearing today at 10:00 a.m. before U.S. Magistrate Judge Peter J. Bray.
A federal grand jury returned a four-count indictment against Dixon Aug. 7, 2019, alleging three counts of filing false tax returns and one count of bankruptcy fraud.
The Indictment alleges from 2004 until 2011, Dixon operated the two sports bars - one located across from Minute Maid Park and the other near the Toyota Center and filed for business bankruptcy during the 2011 Astros baseball season. After which, a local trustee was appointed to administer the business estate and to pay creditors, according to the charges. In 2013, Dixon also filed for personal bankruptcy.
According to the charges, Dixon concealed approximately $170,000 from the trustee and creditors by taking cash from the businesses and using it for his personal use and benefit. Dixon allegedly filed personal income tax returns and did not report the true and accurate amount of income he earned from the businesses.
The indictment further alleges that in 2013, Dixon filed his personal 2010 and 2011 tax returns in which he falsely reported his total income for each year, thereby under reporting taxes owed to the IRS. Similarly, in 2013, Dixon under reported the amount of taxes he and his business partners owed to the IRS after causing the trustee to file a false partnership return that did not report approximately $207,326 in earnings.
If convicted of filing a false tax return, he faces up to three years in prison, while a conviction for bankruptcy fraud carries a possible five-year-maximum term.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Oklahoma Probation Officer Pleads Guilty to Sexual AssaultRead the Press Release
Steven Powers, 35, a former probation and parole officer with the Oklahoma Department of Corrections, pleaded guilty today in federal court in Tulsa, Oklahoma, to two counts of violating the civil rights of two female probationers whom he supervised when he subjected them to unwanted sexual contact.
According to court documents, during the course of supervising the victim listed in Count One, from on or about Nov. 3, 2015 through Jan. 19, 2017, Powers engaged in sexually inappropriate behavior, culminating in sexual assault. During the course of supervising the victim listed in Count Two, from on or about Nov. 2, 2015 through April 30, 2017, Powers likewise engaged in sexually inappropriate behavior, culminating in sexual contact against the victim’s will. In each of these instances, the defendant admitted that he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will not tolerate probation officers who exploit their authority by sexually assaulting individuals under their supervision,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We will continue to vigorously prosecute those who abuse their power in this way.”
“Steven Powers is not above the law. Rather, he took an oath to uphold it. In fact, he betrayed the trust placed in him by the State of Oklahoma to fulfill his duties as a probation and parole officer,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “He egregiously abused his authority by sexually assaulting the victims, violating their civil rights and ultimately damaging the integrity our justice system. For his despicable crimes, we will hold him accountable.”
This case is being investigated by the Oklahoma City Division of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Oklahoma Department of Corrections and the Tulsa County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jarrod Leaman of the Northern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice
Former Oklahoma Probation Officer Pleads Guilty to Sexual AssaultRead the Press Release
Steven Powers, 35, a former probation and parole officer with the Oklahoma Department of Corrections, pleaded guilty today in federal court in Tulsa, Oklahoma, to two counts of violating the civil rights of two female probationers whom he supervised when he subjected them to unwanted sexual contact.
According to court documents, during the course of supervising the victim listed in Count One, from on or about Nov. 3, 2015 through Jan. 19, 2017, Powers engaged in sexually inappropriate behavior, culminating in sexual assault. During the course of supervising the victim listed in Count Two, from on or about Nov. 2, 2015 through April 30, 2017, Powers likewise engaged in sexually inappropriate behavior, culminating in sexual contact against the victim’s will. In each of these instances, the defendant admitted that he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will not tolerate probation officers who exploit their authority by sexually assaulting individuals under their supervision,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We will continue to vigorously prosecute those who abuse their power in this way.”
“Steven Powers is not above the law. Rather, he took an oath to uphold it. In fact, he betrayed the trust placed in him by the State of Oklahoma to fulfill his duties as a probation and parole officer,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “He egregiously abused his authority by sexually assaulting the victims, violating their civil rights and ultimately damaging the integrity our justice system. For his despicable crimes, we will hold him accountable.”
This case is being investigated by the Oklahoma City Division of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Oklahoma Department of Corrections and the Tulsa County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jarrod Leaman of the Northern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Genesis Convention Center Employee ChargedRead the Press Release
HAMMOND- Victoria Wilson, age 52, of Portage, Indiana, was charged by Information with one count of theft from a local government entity receiving federal funds, announced U.S. Attorney Kirsch.
According to the Information, between February 2017 and February 2018, Wilson was employed by the Genesis Convention Center, a venue owned by the City of Gary, Indiana, as its bookkeeper and later as interim Executive Director. The Information alleges that between March and October 2017, Wilson used her position to steal over $10,000 in cash from the Genesis Center.
The parties have entered into a plea agreement to resolve this criminal charge. Under this signed plea agreement, which has been filed with the court, if accepted by the court, would require Wilson to pay $12,727 in restitution to the City of Gary.
U.S. Attorney Kirsch said, “Public corruption cannot and will not be tolerated at any level. My office, together with our law enforcement partners, will continue to pursue matters involving public corruption. I encourage anyone with information concerning corrupt public officials to contact my office or the FBI.”
The United States Attorney’s Office emphasizes that an Information is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court. If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the Federal Bureau of Investigation, with the assistance of Indiana State Police and the Indiana State Board of Accounts. This case is being prosecuted by Assistant United States Attorney Abizer Zanzi.
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Former Financial Adviser Arrested on Fraud Charge for Allegedly Swindling Millions from ClientsRead the Press Release
CHICAGO — A Chicago financial adviser has been arrested on a federal fraud charge for allegedly swindling millions of dollars from clients, including a man who received approximately $5 million in a wrongful conviction settlement.
MARCUS E. BOGGS, 49, is charged with one count of wire fraud. Boggs was arrested on Aug. 22, 2019, at O’Hare International Airport in Chicago prior to boarding an international flight. He appeared Monday before U.S. Magistrate Judge Jeffrey Cole and was ordered to remain detained in federal custody without bond.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. Valuable assistance was provided by the Chicago Regional Office of the U.S. Securities and Exchange Commission, which previously filed a civil enforcement action against Boggs. The government is represented by Assistant U.S. Attorney John D. Mitchell.
Boggs worked as a financial adviser in the Chicago office of a large wealth management firm, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. From 2009 to 2018, Boggs stole at least $2 million from client funds and used the money to make mortgage payments, travel to lavish international locations, and pay other personal expenditures, the complaint states.
The complaint describes the misappropriation of funds from four of Boggs’s clients. One of those clients received approximately $5 million in a 2014 settlement after being wrongfully convicted of murdering a 14-year-old girl, the complaint states. The man invested some of the settlement funds with Boggs’s firm on the understanding that Boggs would manage the money and ensure that he had enough funds for the rest of his life. Boggs instead stole approximately $815,000 from the man’s accounts to pay personal credit card debt, the complaint states.
Another victim cited in the complaint sold his home and invested the proceeds with Boggs. The victim understood that Boggs would manage the funds in safe investments to generate retirement income, the complaint states. When the value of his accounts began decreasing, Boggs misrepresented that it was due to fluctuations in the stock market, the complaint states. In reality, Boggs had used approximately $127,000 from the man’s accounts to pay personal credit card debt, the charge alleges.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former CPA Indicted for Failing to Report Foreign Bank Accounts and Filing False Documents with the IRSRead the Press Release
A federal grand jury returned a superseding indictment charging Brian Booker, a former resident of Fort Lauderdale, Florida, whose business specialized in international trade, with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to the superseding indictment, Booker, a former Certified Public Accountant, owned a cocoa trading company that was organized under the laws of the Republic of Panama. Booker allegedly operated that company from Venezuela, Panama, and his former residence in Fort Lauderdale, Florida. The superseding indictment further alleges that, for calendar years 2011 through 2013, Booker failed to disclose his interest in financial accounts located in Switzerland, Singapore, and Panama on annual Reports of Foreign Bank and Financial Accounts (FBARs) as required by law. Booker also allegedly filed false individual income tax returns for tax years 2010 through 2012 that failed to report to the IRS all of Booker’s foreign bank accounts.
Booker is also charged with filing a false “Streamlined Submission” in conjunction with the Streamlined Domestic Offshore Procedures. The IRS Streamlined procedures allowed eligible taxpayers residing within the United States, who failed to report gross income from foreign financial accounts on prior tax returns, failed to pay taxes on that gross income, or who failed to submit an FBAR disclosing foreign financial accounts, to voluntarily disclose their conduct to the IRS. The superseding indictment alleges that Booker’s Streamlined submission falsely claimed that his failure to report all income, pay all tax, and submit all required information returns, such as FBARs, was due to non-willful conduct.
If convicted, Booker faces a maximum sentence of five years in prison for each count relating to his failure to file an FBAR. He also faces a maximum sentence of three years in prison for each of the counts related to filing false tax documents.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorneys Sean Beaty and Alexander Effendi of the Tax Division are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Man Charged Under “Drug Kingpin Statute” for Running Large Cocaine and Money Laundering RingRead the Press Release
PITTSBURGH - A resident of Lauderhill, Florida, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug laws, United States Attorney Scott W. Brady announced today.
The six-count Superseding Indictment named Racoco Williams, age 37, as the sole defendant.
According to the Superseding Indictment, on or about April 23, 2017 and on or about August 29, 2017, Williams possessed with intent to deliver five kilograms or more of cocaine. The earlier filed criminal complaint alleged that Williams was staying at a room at the Extended Stay Hotel in Monroeville, Pennsylvania. A federal search warrant of his room revealed 17 kilograms of cocaine and more than $192,000 in cash. The Superseding Indictment further alleges that from in and around 2012 and continuing thereafter to in and around March 2018, Williams conspired with persons known and unknown to distribute and possess with intent to distribute five kilograms or more of cocaine and a quantity of marijuana. The Superseding Indictment further alleges that from in and around 2012 and continuing thereafter to in and around March 2018, Williams participated as a principal administrator in a continuing criminal enterprise that involved 150 kilograms or more of cocaine. The Superseding Indictment further alleges that from in and around 2012 and continuing thereafter to in and around August 2017, Williams conspired with persons known and unknown to commit money laundering. Finally, the Superseding Indictment also alleges that from 2012 and continuing thereafter to in and around August 2017, Williams travelled between states in aid of racketeering activity, namely drug trafficking.
The law provides for a mandatory sentence of life in prison, a maximum fine of $32,750,000 or both.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Department of Homeland Security, the United States Postal Inspection Service and the Pennsylvania State Police conducted the investigation leading to the Superseding Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fifteen people indicted for their roles in a conspiracy to bring large amounts of cocaine and heroin from Mexico and California to Stark CountyRead the Press Release
Fifteen people were indicted for their roles in a conspiracy to bring large amounts of cocaine and heroin from Mexico and California to the Canton area.
Named in the 39-count indictment are: Miguel Reyes-Perez, 33, a Mexican citizen living in Canton; Miguel Ayala-Cardona, 52, of Canton; Juan Silverio Castro-Castrio, 18, of Massillon; Louis Dunson. Jr., 49, of Canton; Louis Dunson, III, 26, of Canton; Oscar Fabian Garcia-Reyes, 29, of Canton; Michael Yarnell Harris, 40, of Massillon; David Deon Jones-Dehart, 38, of Orrville; Stephanie Joy Dehart, 48, of Orrville; Albino Lopez-Ruvalcaba, 43, of Canton; Willie J. Middleton, 63, of Canton; Earnest Lee Nelson, Jr., 36, of Orrville; Rogelio Tello-Ramirez, 51, of Canton; Ciro Ajualip, 26, of Canton, and Alvaro Orosco, 34, of Canton.
Reyes–Perez received cocaine and heroin from California, Mexico and elsewhere, which he then redistributed to drug customers including Ayala-Cardona, Castro-Castrio, the Dunsons, Garcia-Reyes, Harris, Jones-Dehart, Dehart, Lopez-Ruvalcaba, Middleton, Nelson, Tello-Ramirez and Ajualip . Those defendants then sold the drugs to other customers, according to the indictment.
This took place between August 2016 and at least April 2019, according to the indictment.
Additionally, Reyes-Perez is charged with illegal reentry into the United States. He was found here on April 4, 2019, after having been deported on January 30, 2018, according to the indictment.
“This group brought large amounts of heroin and cocaine into Stark County at time when record numbers of our neighbors were dying from drug overdoses,” U.S. Attorney Justin Herdman said. “We will continue to work to disrupt drug trafficking organizations and seek long prison sentences for those profiting off the drug epidemic.”
"These fifteen indicted individuals may live in our area hometowns of Canton, Massillon, Orrville and Wooster, but they had far reaching contacts that allowed them to bring dangerous illegal drugs into and across our country,” said FBI Special Agent in Charge Eric B. Smith. “The FBI and our law enforcement partners will continue to identify and disrupt drug trafficking networks distributing perilous substances in our neighborhoods."
“The Canton Police Department remains committed to working with its federal law enforcement partners to eradicate this type of criminal activity from our city,” said Canton Police Chief Jack Angelo.
“The Massillon Police Department is pleased to have been able to participate with our law enforcement partners in this endeavor and we are committed to maintaining these relationships for the safety and welfare of our community,” said Massillon Police Chief Keith T. Moser
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation, Canton Police Department, MEDWAY Drug Enforcement Agency and Massillon Police Department. It is being prosecuted by Assistant U.S. Attorney Margaret Sweeney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Felon Sentenced to 34 Months for Possessing Loaded HandgunRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Juan Longino, 46, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 34 months in federal prison, for unlawfully possessing a loaded firearm as a convicted felon. Longino pleaded guilty to this charge on April 23, 2019. His prison term will be followed by a three-year period of supervised release.
In December 2018 and January 2019, Longino drove a heroin dealer around Madison, while the dealer sold heroin to an undercover officer. A warrant was executed at Longino’s home on January 9, 2019, and officers recovered a loaded handgun under his mattress, as well as 5.6 grams of heroin. Longino claimed the heroin was for his personal use and that the firearm was for protection. Longino has an extensive criminal history that spans 26 years. His most recent felony conviction was obtained in 2014, for strangulation/suffocation.
Judge Peterson initially imposed a sentence of 42 months, but then credited Longino for the eight months he has spent in pretrial detention.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charge against Longino was the result of an investigation conducted by the Dane County Narcotics Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Federal Jury Convicts Haywood County Man for Conspiracy to Commit Multiple Armed Business RobberiesRead the Press Release
Jackson, TN – After a three-day jury trial, Johnny Lee Nixon, Jr., 23, was found guilty of Conspiracy to Commit multiple business robberies, Hobbs Act business robbery, possession of a firearm during a robbery, and receiving firearms while under indictment. U.S. Attorney Dunavant announced the guilty verdict today.
According to information presented in court, during a period of 5 days in 2016, two masked men armed with pistols robbed three businesses in the Brownsville, Haywood County area: the F&D Quick Stop, the Discount Tobacco andMore, and the Bells Express Truck Stop. Also during this time, there were two different shootings where 9mm shell casings and .22 LR shell casings were recovered by the Brownsville Police Department.
On April 25, 2016 after the Bells Express Truck Stop robbery, deputies with the Haywood County Sheriff's Department collected clothing on a nearby road that was worn by the armedmaskedmen observed in the surveillance footage. Deputies forwarded those items of evidence to the Tennessee Bureau of Investigation for DNA analysis, which in 2018 linked Lacey Jeter and Johnny Lee Nixon, Jr. to the clothing.
On April 26, 2016, Officers with the Brownsville Police Department observed a vehicle that matched the description of the vehicle seen leaving the scene of the Bells Express Truck Stop robbery and initiated a traffic stop. After a brief chase, the vehicle crashed in rural Haywood County. The occupants of the vehicle ran into nearby woods leaving behind two pistols similar to the ones described in the recent robberies. Officers with the Brownsville Police Department collected the firearms fromthe scene and submitted them to the Tennessee Bureau of Investigation for comparison to the shell casings recovered from the recent shootings. TBI Agents were able to confirm that the shell casings recovered after the shootings were fired fromone of the firearms recovered near the scene of the crash. Johnny Lee Nixon, Jr. was indicted by a federal grand jury in January of 2019.
During the three-day trial, evidence was presented showing Johnny Lee Nixon, Jr. and co-conspirators used the proceeds from the robberies to illegally purchase the firearms used in the shootings and ultimately at least one robbery, and also participated in the conspiracy to commit the robberies and were present during the robbery of the Bells Express Truck Stop and possessed a firearm during the robbery.
U.S. Attorney D. Michael Dunavant said, "Violent crime affects and endangers all communities in West Tennessee, both urban and rural. Robberies of businesses with a firearm are especially dangerous and violent due to the high risk of death and serious bodily injury to innocent victims. Business robberies also have a substantially negative impact on the local economy and commerce, which victimizes the entire community. As a result of this guilty verdict, Nixon will have plenty of time in federal prison to suffer with the consequences of his criminal conduct, and the citizens of Haywood County will be safer for it."
Haywood County Sheriff Billy Garrett, Jr., said: "Special thanks to the hard working people of our U.S. Attorney’s Office for helping our office keep the law abiding citizens of Haywood county safe. I appreciate the teamwork and look forward to working with you again."
"The City of Brownsville is grateful for the support of the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco and Firearms, the Haywood County Sherriff’s Office and the Brownsville Police Department in the prosecution and conviction of Johnny Nixon. Nixon was a danger to society with his lengthy criminal history of robberies, domestic assaults and weapons violations. Working together, Brownsville is a much safe place," said Brownsville Police Chief Barry Diebold.
Sentencing is scheduled forNovember 21, 2019, beforeU.S. District Court Judge J. Daniel Breen. Nixon faces sentences of up to 20 years imprisonment each for the Conspiracy and the Hobbs Act business robbery, a mandatory minimum consecutive sentence of 5 years for the possession of the firearm during a crime of violence, and up to 10 years imprisonment for each of the 3 counts of possession of firearm while under indictment.
This case was investigated by the Brownsville Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Haywood County Sheriff’s Department and the Tennessee Bureau of Investigation.
Assistant U.S. Attorneys Hillary Parham and Matt Wilson are prosecuting this case on behalf of the government.
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FBI Arrests Manhattan Beach Man Facing Federal Charges Related to Movie Investment Scam that Cost Victims $14 MillionRead the Press Release
LOS ANGELES – A Manhattan Beach man surrendered this morning to face federal charges that allege he collected $14 million from investors who were falsely told their money would be used to produce a feature film that Netflix would distribute and would involve several notable Hollywood figures.
Adam Joiner, 41, is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles. A criminal complaint filed August 13 and unsealed this morning charges Joiner with wire fraud, money laundering and aggravated identity theft.
According to the affidavit in support of the complaint, Joiner used fake documents and forged signatures to raise millions of dollars from foreign investment firms based in South Korea and China for a project he said would be called “Legends,” which is described in court papers as “an anachronistic mash-up of legendary and historical figures from nineteenth century America, such as Davy Crockett, Calamity Jane, Paul Bunyan, and John Henry.”
Joiner, who operated a company called Dark Planet Pictures, LLC, allegedly defrauded Korea Investment Global Contents Fund, a South Korean investment fund whose assets are managed by Korean Investment Partners Co., Ltd. (KIP). The complaint also accuses Joiner of defrauding a Chinese investment firm called Star Century Pictures Co., Ltd. and a related company called PGA Yungpark Capital Ltd.
The scheme allegedly began in late 2015 when Joiner met a director of KIP and provided him a script for “Legends,” which Joiner said had been written by his brother. As KIP considered making an investment in the film, Joiner falsely told company representatives that Netflix had agreed to distribute the picture, a claim Joiner supported with a bogus distribution agreement that appeared to be signed by a Netflix executive, according to the complaint. After Joiner provided a copy of the purported distribution agreement, KIP agreed to invest $8 million in the project and, in April 2016, transferred the first half of the investment to Dark Planet Pictures.
During the investigation, FBI agents spoke to the Netflix executive who appeared to have signed the distribution agreement. That executive told the FBI that he had never heard of Joiner, his company or the “Legends” project, nor did he sign the purported distribution agreement, according to the affidavit.
Soon after KIP sent the $4 million to Dark Planet Pictures, Joiner entered into an agreement with the Chinese investors that was supported by the same bogus Netflix distribution agreement, according to the complaint affidavit. As a result of this fraudulent misrepresentation, Yungpark wired $6 million to Dark Planet Pictures in June 2016.
After receiving the initial $10 million from the victim investors, Joiner provided them with updates claiming that well known Hollywood figures – such as producer Don Murphy – had agreed to work on the project, the affidavit states. While Murphy was retained to produce the film and secure a distribution agreement, no distributor was identified, no talent was secured, and no director committed to the film, the complaint alleges. Murphy terminated his arrangement with Joiner in mid-2017.
In late 2016, Joiner allegedly told his investors that he had terminated the distribution agreement with Netflix and had secured a new agreement with Amblin Partners – all of which was bogus, according to executives at both companies. However, the new distribution agreement prompted the South Korean investors to complete their investment by wiring another $4 million to Dark Planet Pictures in early 2017, the complaint alleges.
Following this final wire transfer, Joiner provided a series of excuses to his investors as to why the project was not moving forward, according to the affidavit. He also allegedly provided a forged bank statement to the South Korean investors to prove that he could repay their investment. The FBI reviewed Dark Planet Pictures bank records and determined that more than $5 million of the investors’ money was used to purchase Joiner’s Manhattan Beach residence and another $4.3 million was transferred to a bank account that may be linked to another film in development linked to Joiner.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of wire fraud carries a statutory maximum sentence of 20 years in federal and the money laundering offense could lead to a sentence of up to 10 years. The aggravated identity theft charge carries a mandatory two-year prison term.
This matter is being investigated by the FBI.
This case is being prosecuted by Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section.
FBI Agent, KCPD Sergeant Honored for Significant InvestigationsRead the Press Release
KANSAS CITY, Mo. – Tim Garrison, United States Attorney for the Western District of Missouri, announced today that two local and federal law enforcement officers were recognized for the work on several significant cases as recipients of the 2019 Guardian of Justice Award.
FBI Special Agent Jason Ramsey was recognized for his investigation into a kidnapping conspiracy that involved carjacking, robbing, and forcing drugs upon three young female victims. Both defendants in that case were convicted following a three-day trial.
Det. Sgt. Eric Greenwell of the Kansas City, Mo., Police Department was recognized for his leadership role in investigating a number of violent crimes, including murders and armed robberies.
Ramsey and Greenwell were honored on Thursday, Aug. 15, 2019, during the 17th Annual LECC Training Seminar in Springfield, Missouri.
Special Agent Jason Ramsey
Ramsey has been involved in investigating high-profile, complex cases that involve dangerous defendants exhibiting an extraordinary level of violence against innocent victims. Such victim-intensive cases require investigators to rise to a higher standard of professionalism, capability, and responsibility, a standard that Ramsey exceeds.
In the case of USA v. Wortham, et al, co-defendants Jamerl M. Wortham and Anthony B. Williams were each found guilty of one count of conspiracy to commit kidnapping, three counts of kidnapping, one count of carjacking, one count of conspiracy to commit armed robbery, one count of attempted armed robbery, one count of distribution of phencyclidine (PCP), six counts of possession of a short-barreled shotgun in furtherance of a crime of violence or drug trafficking crime, one count of being felons in possession of a firearm, one count of possession of an unregistered short-barreled shotgun, and one count of possession of a firearm with an obliterated serial number.
Following the trial, jurors needed only an hour and a half to reach guilty verdicts on all counts against both defendants. Neither defendant has been sentenced as yet; Wortham faces a mandatory minimum sentence of 60 years in federal prison without parole, up to life in prison, while Williams faces a mandatory minimum sentence of seven consecutive life sentences.
Initially, the night these crimes were committed, only one defendant was apprehended. Ramsey continued the investigation for two months in order to identify the second defendant. At trial, Ramsey was crucial in evidence-gathering, witness preparation, and determining trial strategy. He was a key witness during the trial as well. Ramsey took a substantial role in communicating with the victims regarding the prosecution of the case, displaying the ability to comfort victims while maintaining a working, professional relationship with them.
Det. Sgt. Eric Greenwell
Greenwell has been the supervisor of the Kansas City, Missouri Police Department’s Career Criminal Task Force for nearly two decades. This squad is tasked with investigating the worst of the worst, recidivistic offenders in the metropolitan area. The offenses the unit investigates include, rape, robbery, assault, gang shootings, drug trafficking, armed robbery, and murder. This unit is unique because it is made up not only of police officers, but multiple federal agents that work under Greenwell’s supervision. The work done by this unit has resulted in countless prosecutions that have benefitted the welfare and safety of the community.
This task force, in conjunction with the FBI, has aggressively targeted subjects involved in armed robberies at local businesses, resulting in 24 federal indictments in the last fiscal year. This places the Kansas City’s initiative fifth in the nation for such indictments. Among those cases was a five-member crew involved in multiple takeover-style robberies of 7-Eleven stores and other businesses. This crew operated by finding two locations next to each other and then simultaneously robbing them both. They did so by shooting out the business windows and holding the employees at gunpoint while demanding money from the business. Another crew robbed taxi drivers, including a 53-year-old Z-Trip driver who refused to give up her money and was shot 18 times with an assault rifle. Another investigation targeted two separate crews who coordinated their robberies of cell phone stores. The violent groups, which stole iPhones, pistol whipped multiple store employees and beat customers. Members of the group were connected to homicides and shootings. Another five-member crew was involved in 11 violent takeover-style armed robberies of local businesses. In one of those robberies, a convenience store clerk was shot and killed. Another six-member crew was involved in 26 armed takeover-style business robberies. While attempting to rob a pharmacy, the crew’s leader was shot and killed in a gun battle with law enforcement officers.
The Career Criminal Task Force coordinated the effort of the Kansas City Police Department and the FBI to identify and arrest a suspect in the murder of seven victims on or around the Indian Creek Trail in Kansas City. Greenwell’s task force also has been involved in several murder cases that have been charged in federal court. Greenwell also coordinated the investigations into nine missing and/or abducted children. Seven of these children were recovered, including a kidnapped infant who was taken from Kansas City to California.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.
Escape from Federal Custody Results in Longer SentenceRead the Press Release
A man who escaped from custody while serving a federal sentence in the Gerald R. Hinzman Center was sentenced August 26, 2019, to serve an additional four months in federal prison.
Shaquandis Thurmond, age 25, from Cedar Rapids, Iowa, received the prison term after a May 10, 2019 guilty plea to escape from federal custody.
In a plea agreement, Thurmond admitted he was in the Gerald R. Hinzman Center in Cedar Rapids pursuant to an August 3, 2018, federal court order issued for a supervised release violation following his previous conviction in a firearms case. On August 26, 2018, Thurmond left the facility claiming he was going to a local church. Thurmond remained a fugitive until his arrest on March 18, 2019, when he was found by the University of Northern Iowa Police Department.
Thurmond was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Thurmond was sentenced to four months’ imprisonment to be served consecutively with the 12 month sentence Thurmond received for his supervised release revocation. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Thurmond is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and investigated by the United States Marshals Service and the Northern Iowa Fugitive Task Force, with the assistance of the University of Northern Iowa Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00035.
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Ely Man Indicted for Murder of 3-Year-Old GirlRead the Press Release
LAS VEGAS, Nev. – An enrolled member of the Ely Shoshone Tribe was indicted by a federal grand jury charging him with the murder of a three-year-old girl.
“Violent crime against women and children on tribal land is a significant priority for the Department of Justice,” said United States Attorney Nicholas A. Trutanich for the District of Nevada. “I am proud to be part of an organization that does its very best to protect vulnerable victims.”
“One of the reasons that the Las Vegas Division augmented our resources in Northern Nevada was to amplify and strengthen our existing partnerships with our local and tribal partners,” said Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Field Office. “This complex investigation underscored the success of these efforts.”
Colon Jackson, 28, was arrested last week Friday in White Pine County, Nev. His detention hearing is scheduled to be continued to August 29, before United States Magistrate Judge Carla Baldwin Carry. Jackson is charged with one count of murder in the first degree. A trial date has been set for October 22, 2019. If convicted, the maximum penalty is life in prison.
According to the indictment and facts presented at the detention hearing, on January 9, 2019, the 3-year-old girl went to day care and was later picked-up by her mother and taken home so Jackson could care for her while her mother was at work. After the victim’s mother returned to work, Jackson called her to tell her that the girl was unconscious. The mother came home and took the child to the emergency room in Ely. The girl was then flown from Ely to Salt Lake City and died shortly thereafter. As alleged, Jackson abused the girl resulting in a significant head injury causing her death.
The charge is merely an allegation and the defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the FBI. Assistant United States Attorneys Penelope Brady and Sue Fahami are prosecuting the case.
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Ellenville Man Sentenced for Defrauding the Social Security AdministrationRead the Press Release
ALBANY, NEW YORK – Anthony Alvarez, age 38, of Ellenville, New York, was sentenced yesterday to 15 months in prison, to be followed by 3 years of supervised release, for fraudulently obtaining more than $38,000 in benefits from the Social Security Administration (SSA).
The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent in Charge of the SSA Office of the Inspector General, New York Field Office.
As part of his January 3, 2019 guilty plea, Alvarez admitted that from January 2011 to February 2015, he fraudulently concealed from the SSA the fact that he was living in the Philippines so that he could continue to receive Supplemental Security Income benefits.
Senior United States District Judge Gary L. Sharpe also ordered Alvarez to pay $38,894.42 in restitution to the SSA.
This case was investigated by the SSA Office of the Inspector General, and was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal and Special Assistant U.S. Attorney Jason W. White.
Eight Defendants Charged with Running Two of the Largest Illegal Television Show and Movie Streaming Services in the United StatesRead the Press Release
A federal grand jury returned an indictment today charging eight individuals with conspiring to violate federal criminal copyright law by running two of the largest unauthorized streaming services in the United States, resulting in the loss of millions of dollars by television program and motion picture copyright owners.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement today.
According to the indictment, Kristopher Lee Dallmann, 36; Darryl Julius Polo, aka djppimp, 36; Douglas M. Courson, 59; Felipe Garcia, 37; Jared Edward Jaurequi, aka Jared Edwards, 38; Peter H. Huber, 61; Yoany Vaillant, aka Yoany Vaillant Fajardo, 38; and Luis Angel Villarino, 40, allegedly ran an entity called Jetflicks, an online subscription-based service headquartered in Las Vegas, Nevada, that permitted users to stream and, at times, download copyrighted television programs without the permission of the relevant copyright owners.
The defendants reproduced tens of thousands of copyrighted television episodes without authorization, and distributed the infringing programs to tens of thousands of paid subscribers located throughout the U.S. At one point, Jetflicks claimed to have more than 183,200 different television episodes. One of the defendants, Polo, left Jetflicks and created a competing site based in Las Vegas called iStreamItAll (ISIA) that at one point claimed to have 115,849 different television episodes and 10,511 individual movies. Like Jetflicks, ISIA offered content for a regular subscription fee to viewers around the United States, and ISIA publicly asserted that it had more content than Netflix, Hulu, Vudu and Amazon Prime. The two services were not only available to subscribers over the internet but specifically designed to work on many different types of devices, platforms and software including numerous varieties of computer operating systems, smartphones, tablets, smart televisions, video game consoles, digital media players, set-top boxes and web browsers.
In addition, the grand jury charged Dallmann with two counts of criminal copyright infringement by reproduction or distribution, two counts of criminal copyright by public performance and four counts of money laundering, and charged Polo with two counts of criminal copyright infringement by distributing a copyrighted work being prepared for commercial distribution, two counts of criminal copyright infringement by reproduction or distribution, two counts of criminal copyright infringement by public performance and four counts of money laundering.
According to the indictment, Jetflicks allegedly obtained infringing television programs from pirate websites around the world—including some of the globe’s biggest torrent and Usenet sites specializing in infringing content such as The Pirate Bay, RARBG and Torrentz—using various automated computer scripts, often providing episodes to subscribers the day after the shows originally aired on television. Specifically, the defendants allegedly used sophisticated computer code to scour global pirate sites for new illegal content to download, process and store the shows, and then make those episodes available on servers in the United States and Canada to Jetflicks subscribers for streaming and/or downloading.
According to the indictment, Polo was allegedly part of the computer programming team that built Jetflicks but later left and started ISIA, a competing service based in Las Vegas that offered not only television programs but movies. Polo allegedly used many of the same automated tools that Jetflicks employed to locate, download, process and store illegal content, and then quickly make those television programs and movies available on servers in Canada to ISIA subscribers for streaming and/or downloading. In fact, some of the movies offered by ISIA were not yet available for authorized sale, download, or viewing outside a movie theater.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI conducted the investigation. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Alexander P. Berrang of the Eastern District of Virginia and are prosecuting the case.
Eight Defendants Charged with Running Two of the Largest Illegal Streaming Services in U.S.Read the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging eight Las Vegas residents with conspiring to violate federal criminal copyright law by running two of the largest unauthorized streaming services in the United States, resulting in the loss of millions of dollars by television program and motion picture copyright owners.
According to the indictment, the defendants allegedly ran an entity called Jetflicks, an online, subscription-based service headquartered in Las Vegas that permitted users to stream and, at times, download copyrighted TV programs without the permission of the relevant copyright owners.
The defendants reproduced tens of thousands of copyrighted TV episodes without authorization, and distributed the infringing programs to tens of thousands of paid subscribers located throughout the United States. At one point, Jetflicks claimed to have more than 183,200 different TV episodes. One of the defendants, Polo, left Jetflicks and created a competing site based in Las Vegas called iStreamItAll (ISIA) that at one point claimed to have 115,849 different television episodes and 10,511 individual movies. Like Jetflicks, ISIA offered content for a regular subscription fee to viewers around the United States, and ISIA publicly asserted that it had more content than Netflix, Hulu, Vudu and Amazon Prime. The two services were not only available to subscribers over the internet but specifically designed to work on many different types of devices, platforms, and software including numerous varieties of computer operating systems, smartphones, tablets, smart televisions, video game consoles, digital media players, set-top boxes and web browsers.
According to the indictment, Jetflicks allegedly obtained infringing TV programs from pirate websites around the world—including some of the globe’s biggest torrent and Usenet sites specializing in infringing content such as The Pirate Bay, RARBG and Torrentz—using various automated computer scripts, often providing episodes to subscribers the day after the shows originally aired on TV. Specifically, the defendants allegedly used sophisticated computer code to scour global pirate sites for new illegal content to download, process and store the shows, and then make those episodes available on servers in the United States and Canada to Jetflicks subscribers for streaming and/or downloading.
The defendants are: Kristopher Lee Dallmann, 36; Darryl Julius Polo, aka “djppimp”, 36; Douglas M. Courson, 59; Felipe Garcia, 37; Jared Edward Jaurequi aka “Jared Edwards”, 38; Peter H. Huber, 61; Yoany Vaillant, aka “Yoany Vaillant Fajardo”, 38; and Luis Angel Villarino, 40.
According to the indictment, Polo was allegedly part of the computer programming team that built Jetflicks but later left and started ISIA, a competing service based in Las Vegas that offered not only television programs but movies. Polo allegedly used many of the same automated tools that Jetflicks employed to locate, download, process, and store illegal content, and then quickly make those TV programs and movies available on servers in Canada to ISIA subscribers for streaming and/or downloading. In fact, some of the movies offered by ISIA were not yet available for authorized sale, download, or viewing outside a movie theater.
All eight defendants are charged with conspiracy to commit criminal copyright infringement and, if convicted, they face a maximum penalty of five years in prison. The criminal copyright infringement by reproduction or distribution and criminal copyright infringement by public performance charges, with which Dallmann and Polo are charged, each carries a maximum penalty of one year in prison. The criminal copyright infringement by distributing a copyrighted work being prepared for commercial distribution offenses, with which Polo is charged, carry a maximum penalty of five years in prison. And, each of the charged money laundering offense carry a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division, and Timothy R. Slater, Assistant Director of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney Alexander P. Berrang and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-253.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
District Man Sentenced to 36 Months for Assault with a Dangerous WeaponRead the Press Release
WASHINGTON – Maxim R. Smith, 25, of Washington, D.C., was sentenced today to 36 months in prison followed by three years of supervised release for assault with a dangerous weapon, and for beating a man approximately 12 months ago in Northwest Washington, U.S. Attorney Jessie K. Liu announced today.
Smith was found guilty on June 19, 2019, following a trial in the Superior Court of the District of Columbia. Smith was convicted of assault with a dangerous weapon and assault with significant injury while armed. He was sentenced by the Honorable Judge Kimberley S. Knowles.
“Today’s sentence holds Maxim Smith accountable for brutally beating a man,” said U.S. Attorney Liu. “This prosecution vindicates the principle that everyone in our community deserves the protection of the law.”
According to the government’s evidence, on August 6, 2018, the victim was driving in his vehicle through Georgetown after a friend’s gathering. As he drove toward Wisconsin Avenue NW on M Street NW, he encountered Smith stopped on his bicycle in the middle of the right turn lane. The victim honked his horn, and Smith yelled expletives at the victim and did not move. The victim then passed the defendant on the left side in his vehicle, and at that point heard a loud thump on the back of his car. Assuming the defendant had hit his car with an object, the victim turned right onto Wisconsin Avenue NW and pulled his car to the side of the road. The victim got out of his car to inspect for damage and to call the police. Smith also turned right onto Wisconsin Avenue NW and rode his bike to Prospect Street. As soon as Smith turned back and saw the victim on the phone, he shouted to the victim, “Are you really calling the police?” and directed a racial slur at him. The victim is a black male from Cameroon, and the defendant is a white male. Smith then rode aggressively back toward the victim and got into a physical altercation with him. Smith then struck the victim on the head with a metal u-lock while yelling racial slurs at him. The victim required 21 stiches to his head as a result of the assault.
This was a brutal attack accompanied by explicit racial slurs. The Office charged the hate-bias enhancement, the jury hung on that charge, and the Honorable Judge Knowles was asked to consider the hate motivation at sentencing.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the work of those who handled the case at the U.S. Attorney’s Office including Assistant U.S. Attorneys Jack Korba and Alyse Constantinide.